Location vs house

Mishca21

I’m desperate for advice as existing posts across various forums just don’t seem to help with my situation.

Firstly .. I do appreciate I should be grateful I’m even in a position where I have choices when so many don’t at the moment. I’m just afraid of making a big mistake!

I sold my 4 bed in a lovely rural area on the outskirts of my city after the end of my relationship. It made a good profit and we were each left with a decent deposit, but buying on just one income obviously limits options and I have to re-evaluate what I’m likely to secure. My kids are adult and moved out so only me to worry about. 

The mantra on all forums is location is everything and to buy the worst house in the best neighbourhood you can afford since you can always increase its value with improvements, but you can never change an iffy location. Even worse.. if you go for the best house in a bad street it’s likely to already be at its max value and therefore can only head downwards! 

BUT what if the iffy location is all you can afford? And even if you do go for the fixer upper in a better area what if you’re unlikely to ever be able to afford the improvements given the rising cost of living and likely challenge to save once you’ve invested all your money buying the house and committing to mortgage and bills? I’ve already learned a hard lesson that you have to be realistic about what can be achieved with limited disposable income and zero DIY skills, no friends or family in the trade to help with works or give discounts or freebies, and who wants to live in a pit constantly worrying about leaks, damp and failures? 

I’ve offered £190k on a 2 bed house that wowed me as it was spectacularly well presented inside, a restored Victorian period end of terrace that would need almost nothing changing internally, just a little TLC on the exterior assuming these are only cosmetic issues. I’m in love with the layout and interior of the house and can totally see me and my furniture in there. 

However I’m less enthused with the road and wider area, only two streets away from my parents’ house in a very urban run down part of the city where I grew up and fear I might hate living there. I’m aware I have a deep rooted issue moving back as it somehow feels like a massive backwards step after 23 years away from home. Also as a woman living alone I don’t want to move anywhere I’d feel unsafe and at least my parents’ area is familiar to me, not great but not quite a total hotbed of crime!

My original budget was £160-£170k but quickly established that would only get me tiny or very run down houses, even in the much less affluent areas of the city. I’m generally quite a risk averse person but previous experience with maintenance issues and escalating costs has left me terrified of money pit houses, hidden horrors and being flat broke so I just won’t go there! £190k is a bit more than I’d planned to spend but if it was a safe bet structurally for at least the first 5 years to me it’s worth the extra cost and a longer mortgage term. I intend to organise a full survey on any house I buy so I have that security.

I realise my approach might seem short sighted and out of line with advice, ie not considering how property values might shift in the future and the house’s future sell-ability if it’s already the best it can be. I just need to know I’ll be able to cope day to day and don’t own a ticking time bomb with limited emergency funds to call on in the early years. 

My offer was accepted 4 days ago and almost immediately I started feeling anxious, doubting myself and questioning if I should even proceed. I can’t work out whether my gut is telling me something about this particular house, it’s my issues with the street and area or just cold feet given my previous experiences and the big commitment and risk that would be the same no matter which house I buy which will be in a cheap area regardless as it’s what I can afford. 

Basically once all my deposit money is invested in a house that’s it, I’ll be back on only my salary month to month trying to make ends meet, the same as everyone else. I have an additional £10-12k for fees, moving costs, initial furnishings and minor works but after that saving back up will be extremely slow if even possible given the uncertainty and current climate. 

I appreciate it’s not possible to ever totally de-risk a house purchase and  you just have to collect as much info as you can to help make a decision and the rest is a leap of faith. I don’t want to let this house go only to find it was just cold feet and not founded in anything real as I know I could feel this way with any house I start to buy. Which is unlikely to ever be as lovely and appealing to me inside as this one is. 

Appreciate thoughts and views and if anyone else has been in a similar situation where you have to both downsize and downgrade area plus a fixer upper is just not really an option? 

babyblade41

It will always be location, every time 

anaspiringhobbit

I think this house sounds like the right choice for you, right now. Certainly if you’re going down to a single income and will need to work to rebuild emergency funds, then you’d rather have a house which is fine as is, and needs no work.

youth_leader

I agree that location is key, I feel happy that I know my property will sell easily when my kids need to sell it.

AFF8879

anaspiringhobbit said:

I think this house sounds like the right choice for you, right now. Certainly if you’re going down to a single income and will need to work to rebuild emergency funds, then you’d rather have a house which is fine as is, and needs no work.

Also given it’s almost universal to underestimate the cost of property refurbishment/renovation work…

Loza2016

I’m all about location usually but there is no point buying a run down house if you haven’t got the money to do it up. 

youth_leader

I sold a run down house and moved here to avoid the constant worry of maintenance. Unfortunately for me all of my equity is going on having the floors replaced, carpets here are fitted and surveyor stated he couldn't inspect the sub floor.  Do get a damp and timber survey done too to make sure. 

hazyjo

Not a fan of leasehold, but I'd rather a flat in a nice area than a house in a crap one. Bit like starting out in reverse. I had 2 flats before I could afford a house (with an ex).

Is it cheaper to move further out? Are you being too cautious? Are you worried about losing your job, is that the reason for a large buffer (think that's what you're saying)? How much will you roughly be left with after mortgage, bills, etc? You talk like it'll be really tight. Lending criteria should, in theory, mean you can afford it comfortably enough, so could you take a look at what you're spending money on? Where you can make cutbacks?

Mardle

Get a survey done and see what that finds. If the surveyor finds nothing unexpected then go for it. Don't look at it as a move backwards. You know the area well so look at that as a plus. You'll also be near to your parents should they ever need your help.

It's fine for people who can afford it to say 'Location, every time' but it's more important to find a house you love that you can afford to live in. When my mother died I was living in a rented house with my daughter and reliant on benefits. After Mum's bungalow was sold and I'd got my share it was only enough to buy a very cheap house. It was never going to be enough to be able to buy in a nice location but we did find a house that we fell in love with and could afford. Over the last 7 years that we've been here we've had to put up with all sorts of anti-social behaviour in the street but thanks to the local community policing team the area has improved. My brother died recently and when his house is sold I'll be able to afford to move to a better location but probably won't. 

Mishca21

hazyjo said:

Not a fan of leasehold, but I'd rather a flat in a nice area than a house in a crap one. Bit like starting out in reverse. I had 2 flats before I could afford a house (with an ex).

Is it cheaper to move further out? Are you being too cautious? Are you worried about losing your job, is that the reason for a large buffer (think that's what you're saying)? How much will you roughly be left with after mortgage, bills, etc? You talk like it'll be really tight. Lending criteria should, in theory, mean you can afford it comfortably enough, so could you take a look at what you're spending money on? Where you can make cutbacks?

I’m currently spending hardly anything, I’ve paid off all debt and am staying with my parents after the sale of my house went through late last year, but living and working out of one room in my 40s is not manageable for more than a further 6 months! Perhaps I’m being too cautious at c20k within my lending limit but my last experience being left with all the costs and maintenance of a 4 bed in an expensive area alone and almost losing everything has probably affected me more than I expected. I take home just short of £1900 with my NHS job which is pretty secure, and with mortgage and core bills together expect to be left with about £700- 800 pm for food/ travel and essentials, fun and savings. However I’m a little worried about the cost of living rises over the coming years and being on my own. Not sure how this works in other places but here (Plymouth) moving further out is more expensive not less! No I wouldn’t be keen to own a flat as I’d been too fearful of the leasehold and service charge trap. 

Mishca21

Mardle said:

Get a survey done and see what that finds. If the surveyor finds nothing unexpected then go for it. Don't look at it as a move backwards. You know the area well so look at that as a plus. You'll also be near to your parents should they ever need your help.

It's fine for people who can afford it to say 'Location, every time' but it's more important to find a house you love that you can afford to live in. When my mother died I was living in a rented house with my daughter and reliant on benefits. After Mum's bungalow was sold and I'd got my share it was only enough to buy a very cheap house. It was never going to be enough to be able to buy in a nice location but we did find a house that we fell in love with and could afford. Over the last 7 years that we've been here we've had to put up with all sorts of anti-social behaviour in the street but thanks to the local community policing team the area has improved. My brother died recently and when his house is sold I'll be able to afford to move to a better location but probably won't. 

Thank you for your comment, and so sorry for your loss. This is exactly my point, people say location is everything but everything is relative and the best someone can afford is obviously not going to be the same across the board. I will need the survey detail to help me feel more comfortable either way. You can get pockets of issues anywhere, even in parts of good areas. I think I will need to do my homework on the street and talk to some of the neighbours. Safety and security is big concern.